Pakistan Economy

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Apr 11, 2017
*Tuesday, November 26, 2019*

*PM sees further growth in remittances* | A significant growth in home remittances has been witnessed in fiscal year 2018-19 and inflows are expected to rise further in coming years, said Prime Minister Imran Khan.

*Foreign inflows in T-bills cross $1bn* | Debt auctions have been attracting foreign inflows since July when interest rates hit a peak of 13.25 per cent, with the pace accelerating every month.

*Second phase of CPFTA : Country has secured enhanced, deeper concessions* |Second phase of China-Pakistan Free Trade Agreement (CPFTA) will come into force later this week that is to eliminate tariffs on 313 most priority tariff lines of Pakistan’s export.

*CPEC : Pakistan has sovereign right to decide its future: US envoy* | The US ambassador to Pakistan Monday said the remarks on CPEC by US Assistant Secretary of State for South Asia were meant to generate debate however it was Pakistan’s sovereign right to decide its future.

*Dasu hydropower project: Wapda inks Rs52.5bn contract with Chinese firm* | Water and Power Development Authority (Wapda) Monday signed a contract worth Rs52.5 billion as a joint venture of GE Hydro China and Power China Zhongnan Engineering Corporation for electro-mechanical works of Dasu Hydropower Project (stage-I).

*Energy sector: LCCI for joint ventures with Chinese cos* | Pakistan is anxiously seeking joint ventures in energy sector between Pakistani and Chinese private sectors which would not only help much-needed transfer of technology but would also help bring down cost of production in Pakistan.

*12 wind power projects worth $1bn being set up in Sindh* | With an estimated cumulative cost of around one billion US dollars, 12 wind power projects of total 610 megawatts electricity are being set up at the Wind Corridor of Sindh.

*Govt to offer tax benefits to manufacturers of electric vehicles* | in order to reduce its inflated oil imports' bill, carbon emissions, boost industrial growth and create jobs opportunities.

*‘Good’ opportunities exist for US investors: USDA agri counselor* | Agricultural Counsellor of United States Department of Agriculture (USDA) Rey Santella has said good opportunities for US investors exist in Pakistan where they can surely explore trade and investment opportunities in numerous sectors including the agriculture, dairy, food items and animal feeds etc.

*Textile firms mull moving abroad to escape high cost* | A number of textile manufacturers are moving their operations abroad or at least considering overseas expansion as cost of doing business, stuck up refunds, and high interest rates make products of world’s key producer more expensive, industry officials said on Monday.

*Sugarcane crushing begins in Punjab without price notification* | due to negligence of the provincial government or underhand dealings with mill owners who managed to delay it for depriving the farmers of their hard-earned money.

*OGDCL plans to drill first shale gas pilot well in Sindh next month* | to test potential of tight gas in the country.

*KE, Engro Energy sign MoU to set up Karachi’s first waste-to-energy plant* | Aimed at reducing the climate change impact by converting Karachi’s municipal solid waste into indigenous and renewable resource of energy.

*Govt approaches IHC, seeks order to hold verdict in treason case against Musharraf* | The IHC has constituted a larger bench to hear government's petition.

*Asian Stocks Advance Amid Trade Optimism, M&A: Markets Wrap* | Asian stocks gained Tuesday amid optimism over U.S.-China trade talks and a fresh wave of merger and acquisition activity.

*Oil Holds Gain Amid Signs of U.S.-China Trade Deal Progress* | Oil held gains near $58 amid growing optimism about prospects for a settlement in the long-running U.S.-China trade war.

_Ismailiqbal Securities_


Active Member
Apr 9, 2017
FBR fails to meet revenue target as deficit reaches Rs214bn

Shabbar Zaidi says revenue collection in 5MFY20 is 17pc higher compared to last year

ISLAMABAD: As the request for a downward revision in the revenue target has been rejected by International Monetary Fund (IMF), it seems that it would be difficult for the Federal Board of Revenue (FBR) to meet the ambitious target of collecting Rs5.5 trillion set for the current fiscal year (FY20).

The revenue board collected around Rs1,614 billion in the first five months (July-Nov) of FY20, against the envisaged target of Rs1,828.4 billion


Active Member
Apr 9, 2017
Weekly Economic Roundup
By News Desk -December 1, 2019

December 1, 2019 (MLN): The financial snapshot of the country was brought to light with the economic and financial data releases over the course of the week.

The Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 0.22% during the week ended Nov 21, 2019 while the SPI increased by 19.86% compared to the corresponding period from last year.

The State Bank of Pakistan (SBP) released the auction calendar for the next three months, Dec-Feb, in which it aims to raise Rs.2.85 trillion from the auction of Market Treasury Bills (MTB) and Pakistan Investment Bonds (PIB).

The non-government sector has borrowed another net sum of Rs.8.25 billion during the week ended November 22, 2019, which brings the cumulative net borrowing for ongoing fiscal year FY2020 to Rs.32.96 billion. The net borrowing as of prior week was recorded at Rs.24.71 billion.

The government of Pakistan has retired Rs.99.57 billion during the week ended November 22, 2019, which brings its total net borrowing for ongoing fiscal year 2020 to Rs.145.48 billion. As of prior week, the government had borrowed a net sum of Rs.245.05 billion.

The non-government sector has borrowed a net sum of Rs.41.44 billion during the week ended November 15, 2019, which brings the cumulative net borrowing for ongoing fiscal year FY2020 to Rs.24.71 billion. The net retirement as of prior week was recorded at Rs.16.73 billion.

The government of Pakistan has retired Rs.26.08 billion during the week ended November 15, 2019, which brings its total net borrowing for ongoing fiscal year 2020 to Rs.245.05 billion. As of prior week, the government had borrowed a net sum of Rs.271.13 billion.

Pakistan's Forex Reserves increased by USD 115.40 Million or 0.75% and the total liquid foreign reserves held by the country stood at USD 15,577.70 Million on Nov 22, 2019.

Pak Rupee's Real Effective Exchange Rate Index (REER) increased by 0.37 percent in October 2019 to a provisional value of 94.7100 from the revised value of 94.3600 in September 2019.

Metal Group imports reduced by 20.90% during the Jul-Oct FY20 as compared to the corresponding period last fiscal year. According to the data released by the Pakistan Bureau of Statistics, Metal Group imports came down from $ 1.75 billion to $1.39 billion in the aforementioned period.

Foreign investors continued to be net buyers for the sixth successive week as the total purchase of securities during the week via Special Convertible Rupee Account (SCRA) outstripped total sale by around Rs. 49.84 billion as on November 22, 2019.
Pakistan earned $120 million by providing different travel services in various countries during the first quarter of the current financial year 2019-20.

Profits and dividends repatriated by countries on foreign total investment during Jul-Oct FY20 stood at $548.1 million, up by 10.27% YoY from $497 million in the same period last fiscal year.

Pakistan has acquired around $2.52 billion as foreign economic assistance during Jul-Oct FY20 from multilateral, bilateral, Saudi Arabia-Short term loans as well as Commercial Banks.

The Banking sector spread for October 2019 slightly depressed by 4 basis points (bps) over the month which brings its latest value to 6.13% as compared to prior month's spread of 6.17%.

Alternatively, the spread has inched up by 110 bps as compared to the same period last year.

According to the latest data released by SBP on advances classified by borrowers, the overall credit to government sector surged by 1.51% MoM to an accumulated amount of Rs 12.7 trillion in the month of October 2019 when compared to September 2019. The credit to the private sector which includes SBP credit and Scheduled banks credit rose marginally by 0.16% to Rs7.79 trillion.

The National Electric Power Regulatory Authority (NEPRA) on Tuesday has allowed an increase of 14.56 paisa per unit in power tariff for ex-WAPDA Discos on account of power purchase price (PPP) adjustment for the Jul-Sept FY20.

The Ministry of Planning Development and Reforms has so far given the authorization to release Rs5.762 billion for various agriculture sector development projects under its Public Sector Development Program (PSDP) for the financial year 2019-20 as against the total allocation of Rs 12.047 billion.

The total DAP offtake during the month of October 2019 was recorded at 271 thousand tonnes, i.e. lower by 48 percent as compared to the same month of last year.

Urea offtake during the month of October 2019 stood at 119 thousand tonnes, recording a decrease of 74.4 percent over October 2018.


Active Member
Apr 9, 2017
Key Pakistan Market Stats and Economic Indicators
By News Desk -December 1, 2019

Market Data and Economic Indicators

Weekly Performance
Nov 29, 2019 Nov 22, 2019

PKR InterBank 155.2399 155.2935
KSE100 Index 39,287.65 37,925.79
Avg Daily Volume 347,807,383 330,929,917
Gold (Karachi) Rs/10 gm 72,960 73,603
KIBOR 6M 13.61 13.55
10Y PIB 11.35 11.39
EUR 1.1016 1.102
GBP 1.2909 1.2829
CHF 0.9999 0.997
JPY 109.445 108.622
GOLD 1463.61 1462.12
NY Light Crude 55.42 57.88

Open Market Rates
Nov 29, 2019 Nov 22, 2019

USD 155.80 155.50
EUR 172.00 172.50
GBP 201.60 200.80
JPY 1.4290 1.4409
AED 42.65 42.60
SAR 41.65 41.60

SBP Data
T-Bill Auction Cutoff Yield
Nov 20, 2019 Nov 06, 2019

3M 13.5899 13.2902
6M 13.2899 13.2899
12M 13.2499 12.7900
PIB Auction Cutoff Yield Nov 13, 2019 Oct 30, 2019
3Y 11.7999 11.8000
5Y 11.4500 11.6000
10Y 11.3500 11.3500
20Y Bids Rejected Bids Rejected
Interest Rate Corridor Jul 17, 2019 May 21, 2019
SBP Policy Rate 13.25 12.25
SBP Reverse Repo Rate 13.75 12.75
SBP Repo Rate 11.75 10.75

Weekly Indicators
Nov 22, 2019 Nov 15, 2019

SBP FX Reserves * 8,682.30 8,442.10
Bank FX Reseves * 6,895.40 7,020.20
Total FX Reserves * 15,577.70 15,462.30

Nov 21, 2019 Nov 14, 2019

SPI (Combined Group) ** 132.82 132.53
Change – WoW (pct) 0.22 1.09
Change – YOY (pct) 19.86 19.62

Monthly Indicators
October September

Consumer Price Index (Base 2015-16) 129.16 126.86
Change – MOM (pct) 1.82 0.77
Change – YOY (pct) 11.04 11.37
WholeSale Price Index (Base 2015-16) 143.28 140.49
Change – MOM (pct) 1.99 0.07
Change – YOY (pct) 13.22 15.90
Sensitive Price Indicator (Base 2015-16) 128.50 125.72
Change – MOM (pct) 2.21 1.51
Change – YOY (pct) 16.26 17.54
October September
Exports * 2,024.00 1,769.00
Imports * 4,074.00 3,785.00
Trade Balance * -2,050.00 -2,016.00

October September
Home Remittances * 2,000.80 1,747.95
October September
Total Foreign Investment * 215.78 622.56

Quarterly Indicators
Sep 30, 2019 Jun 30, 2019

Pakistan’s External Debt * 106,890.98 106,348.38

Annual Indicators
2018-19 2017-18

GDP Growth Rate 3.29 5.53
Agriculture 0.85 3.94
Manufacturing -0.27 5.43
Commodity Sector 1.13 4.45
Services Sector 4.71 6.25
Trade Balance * (July – June) -31,820.00 -37,583.00
Worker Remittances * (July – June) 21,841.50 19,913.55
Foreign Investment * (July – June) 329.89 5,680.93
Annual Inflation Rate % (July – June) 7.32 3.92

* Amount in USD Million
** Weekly SPI Data for Nov 28, 2019 Not Released by PBS

Posted on: 2019-12-01T13:40:00+05:00
Apr 11, 2017
4-December-2019 SSL News Alert


Baqir says benefits of economic stability must reach people: ‘Inflation, high taxes crippled masses’
Opposition seeks more time to finalise names for ECP members
ARU recovers Rs38 bn through settlement
China, Pakistan to conduct month-long joint military exercise
UK's National Crime Agency agrees to £190m settlement with Malik Riaz's family


In a big economic development, CPEC Phase 2 to create 1.5 million jobs for Pakistani youth:
Pakistan seek $4.3 billion of multilateral financing from the international creditors
Pakistan submits compliance report to FATF
Pakistan lags far behind ‘desirable’ IPR benchmarks: OICCI
Investment in premium bonds climbs twofold in Oct
SECP revises AML/CFT rules
Pakistan’s first tourism expo begins
SBP governor hails economic progress
FBR directed to expedite sales tax refund process
Portugal to help Pakistan retain GSP-Plus status: Sarwar
Interest rate may come down next month: Hafeez Shaikh
Asad Umar vows to promote entrepreneurship culture

Industry Sector

7.44m cotton bales reach ginneries
‘Pepco defeats PM’s export-led growth strategy’
Cotton prices fall on moderate trade
Petroleum products: PD for modifying monthly pricing mechanism
Sales collections: Meezan Bank enters into deal with Dawlance
Oil refineries may hold foreign currency accounts
Incentives urged for halal food sector
Export of wheat products banned

Sources: Dawn News, The Nation, Mettis global,The News,Tribune ,Pakistan Today, Time of islamabad and Business Recorder

Gold USD/oz 1,477.66
Crude Oil USD/bbl 56.41
PKR/USD 155.44

Spectrum Securities Limited
Apr 11, 2017
*Wednesday, December 4, 2019*

*Baqir says benefits of economic stability must reach people: ‘Inflation, high taxes crippled masses’* | Governor State Bank of Pakistan (SBP) Reza Baqir on Tuesday admitted that higher inflation and taxes had crippled the masses and emphasised that steps should be taken to ensure that positive fallout of economic stability reached them

*Hafeez tasks FBR to ease tax related process of textile industry* | Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh has directed the FBR to take input and suggestions from the textile exporters and simplify the H-Form within a week to ease and expedite the processing and payment of Sales Tax (ST) refunds to textile exporters

*ARU recovers Rs38 bn through settlement* | The Assets Recovery Unit (ARU) has facilitated repatriation of £190 million GBP pounds ((Rs38 billion) through a settlement. The United Kingdom’s National Crime Agency (NCA) has agreed an out-of-court settlement in a pending investigation with a Pakistani family that owns large property developments in Pakistan and elsewhere

*Oil refineries may hold foreign currency accounts* | The government is considering a proposal to allow oil refineries to retain their export proceeds in foreign currency accounts in order to help them sustain price volatility in international markets, The News learnt on Tuesday.

*Pakistan submits compliance report to FATF* | Pakistan on Tuesday submitted the final report to the global finance watchdog to show its compliance with anti-money laundering and counter-terrorist financing laws

*Investment in premium bonds climbs twofold in Oct* | Investment into premium prize bonds of Rs40,000 denomination sharply increased 192 percent year-on-year in October owing to drive of the government to document the economy, the central bank’s data showed on Tuesday

*Export of wheat products banned* | The Ministry of Commerce has notified a ban on export of wheat products (maida and suji) for an indefinite period, a notification said on Tuesday

*Govt, IPPs reach agreement* | The Government of Pakistan (GoP) and Independent Power Producers (IPPs) have reportedly reached an agreement to resolve prolonged outstanding issues and litigation at different domestic and international fora

*Stocks Drop, Bonds Jump as Trump Dents Trade Hopes: Markets Wrap* | Stocks dropped around the world and bonds rallied after President Donald Trump aimed his tariff weapon on economies from South America to Europe and China, denting hopes for a global recovery

*OPEC, Russia debate deeper oil cuts as new glut looms* | OPEC and its allies led by Russia are gearing up to approve deeper oil production cuts this week to prevent a new glut and a collapse on oil prices with OPEC member Iraq saying the move was supported by key members

_Ismail Iqbal Securities_
Apr 11, 2017
SBP Extends Date for Exchange Companies Providing Information

State Bank of Pakistan (SBP) on Thursday extended the date for exchange companies to submit information of customers related to anti-money laundering (AML) and Counter Financing Terrorism (CFT).

The central bank amended the Foreign Exchange Circular No. 04 dated October 14, 2019 in this regard.

The SBP said that in terms of instructions given in Para 5 (a) & (b) of the subject framework, authorized dealers in foreign exchange are required, inter alia, to complete the Risk Profiling of Customers and develop their distinct trade related Risk Profile by April 30, 2020.

In view of the prevailing circumstances due to COVID-19 outbreak and representation from the banking industry, it has been decided to extend the aforementioned deadline up to September 30, 2020.

Through the previous notification the SBP stated that in order to strengthen trade related Anti Money Laundering/Combating Financing of Terrorism (AML/CFT) regime and restrict possible misuse of banking channel, a comprehensive framework on the subject has been developed and attached herewith.

Accordingly, Authorized Dealers (ADs) are advised to upgrade their systems and controls and bring policies and procedures in line with the requirements of the framework to ensure meticulous compliance with the provisions thereof with immediate effect except as otherwise provided in the framework

The provisions of this framework are in addition to and not a replacement of already issued instructions on the subject of ML/FT risks.

Therefore, the compliance of the same shall not absolve ADs from their legal and regulatory obligations under prevailing AML/CFT laws/rules and regulations or any other relevant law in force.

ADs are also advised to educate their clients about their obligation of ensuring (a) correct declaration of particulars on the prescribed forms, (b) utilization of foreign exchange for the exact purpose for which it is acquired by them and (c) repatriation of foreign exchange that represents the full export value of goods. In the event, it is found that material information required to be submitted on the prescribed forms has been omitted or suppressed, foreign exchange is misutilized by a client of an AD or export proceeds repatriated by a client does not represent the full export value of goods, SBP shall initiate penal action against such delinquent parties under relevant provisions of the Foreign Exchange Regulation Act, 1947 (FERA).

Further, the matter shall also be reported to relevant stakeholders for necessary action under the laws being administered by them.

Failure to comply with the instructions on the subject and the regulatory obligations of AML/CFT may attract action against ADs under the FERA and other relevant laws.
Apr 11, 2017
NADRA office to open on May 4 across Pakistan

Islamabad: The offices of National Database and Registration Authority (NADRA) will reopen across the country from May 4, said the federal government on Thursday.

The offices will remain open from 10am to 4pm during which biometric verification of beneficiaries of the Ehsaas Emergency Cash Programme will be made.

The NADRA officials have been directed to take strict precautionary measures during the officials timing, while special arrangements will be made to maintain social distancing among visitors due to coronavirus pandemic.
Apr 11, 2017
*Sudden Chinese decision shakes the corners of the entire world*

China surprised the world today and decided to cancel the dollar peg in the stock exchange transactions and decided to deal officially and the official link to the Chinese yuan instead of the dollar, and this is a bold and important step in China's economic history. This means that the dollar has become non-existent in Chinese trading and the US dollar will fall strongly against the Chinese yuan and may affect it in global markets. And all the global markets were stunned by the decision. The news was discussed today on the BBC World English afternoon program. It is an economic war that could lead the world to a devastating war that cannot be neglected if America acts foolishly in the face of this decision !! China 2021 will lead the world. This is China's old dream and what it planned to achieve for decades or more.
China plans a separate digital currency e-RMB, to take on fights with $

e-RMB, which is set to be the first digital currency operated by a major economy.

A sovereign *digital currency provides a functional alternative to the dollar* settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level,” last week’s China Daily report said.

Some government employees and public servants to receive their salaries in the digital currency from May.

A decline in cash usage is expected to continue amid the growing popularity of digital payment platforms and as people avoid physical contact during the coronavirus pandemic.

It may also facilitate *integration into globally traded currency markets* with a reduced risk of politically inspired disruption.


Active Member
Apr 9, 2017
Pakistan to soon overcome COVID-19 challenge: Chinese envoy Yao Jing

Chinese Ambassador to Pakistan Yao Jing has said that Beijing is confident that Pakistan will soon overcome the challenge presented by the coronavirus pandemic which has infected more than 3.34 million people worldwide and killed over 237,000.

In an interview with Chinese state broadcaster CCTV, Ambassador Jing said Pakistan had a lower mortality rate of the virus. “About 60% of Pakistan’s population is under the age of 30. Patients infected with the novel coronavirus are mainly young people, with mild symptoms. It is easier to treat them,” he said.

He added, “Like the traditional Chinese medicine, Pakistan also has a herbal system with good effect on treatment.”

Jing said the cooperation between China and Pakistan has set a good example of international cooperation in the fight against the virus.

“When China was facing a severe challenge because of the coronavirus, Pakistan did its best to help us and in return, Beijing has also helped Islamabad by sending medical teams who have expertise in fighting the virus, relief aid and other things,” he said.

China has sent several consignments of aid relief since it stemmed the spread of the virus in the country.

Last month a special Pakistan International Airline flight arrived carrying 52 tonnes of aid to help Pakistan fight in the coronavirus. The aid included protective kits, masks, testing kits and other medical supplies.

Earlier, the Chinese government sent 12,000 test kits, 300,000 masks, and 10,000 units of Personal Protective Equipment (PPE) to Pakistan along with $4 million to build a separate hospital for coronavirus patients.